Along with the astronomical professional athlete salaries, the cost of covering such a valuable asset has too. Take, for instance, a sports team that has offered guaranteed contracts. If one of their star athletes gets injured, even temporarily, the team could face huge losses. For that reason, the insurance costs are just as influential as TV contracts or ticket sales when it comes to the economics of the business.
As mentioned above, make sure whatever policy you choose will compensate you even if you are one the most highly-compensated athletes in your field. And one that allows you to live the lifestyle you’ve become accustomed to.
Many providers offer several levels of private hospitals that will vary in cost, depending on the premium-rating of that facility.
Underwriters follow a different pre-determined set of guidelines for each sport. The risk inherent in your sport is a determining factor. More contact and greater risk of injury and/or greater risk of very costly injury push up policy costs.
Often a 1-4 risk rating system is used to fairly price professional athlete insurance policies. Low-risk sports such as Darts or Angling = level 1. Whereas, Downhill skiing and Skydiving, considered the highest risk, are therefore rated = level 4.
Excess – Choose a higher or larger excess. The policy ‘excess’ is the amount that you agreed to pay towards the cost of a claim. For instance, if you chose a £500 excess per treatment claim, for one eligible claim cost of £5,000, you would pay the first £500 and your provider would pay the rest – £4500. The larger the excess the lower your premium. Ask for comparison quotes when you shop for coverage.
Private Hospital – Choose one of the lower-level private hospitals that still offers excellent care but not all the extras.
Team Insurance – Sometimes a provider can arrange to cover an entire team. This then lowers the cost of each athlete’s policy.
Pre-Existing Conditions – Do not include the pre-existing conditions option.
See also sports team insurance.